The Finance Algorithm

TPD Insurance Calculator

Estimate the TPD lump sum you'd need if you could never work again: debts, the share of income to replace, and care costs, less the cover you hold.

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$110k

Your current gross annual income

25y

How many working years you have left

%
50%

How much of your income the lump sum should replace until retirement. Less if income protection would also pay.

$
$500k

Mortgage, car loans, personal loans, credit cards

$
$100k

Check your super statement for default TPD cover

$
$20k

Rehabilitation, home modifications, care assistance

'Own occupation' is easier to claim on and costs more; it's usually only available outside super

The button asks our AI to explain these figures in words.

TPD insurance needs

Estimated need

$2,375,000

lump sum if disabled

Cover gap

$2,275,000

existing $100,000

Income replaced

$1,375,000

50% of income for 25 years

Definition

Own occ

usually only outside super

What the lump sum is for

Debt clearance + the share of income you chose to replace + ongoing medical and care costs over your remaining working life.

$2,375,000total need
Debt clearance21.1%
Income replacement57.9%
Medical / care21.1%

Estimated need vs existing cover

Your super statement shows any default TPD cover. Default cover is set by the fund, not by your debts or income.

$2,375,000Estimated need$100,000Existing cover

Need at different shares of income replaced

If you also hold income protection, it replaces part of your income while it pays, so the lump sum can replace less.

$1,687,50025%$2,375,00050%$3,062,50075%$3,750,000100%
Own occupation TPD is usually only available outside super. Since 2014, new TPD cover in super can't use an own-occupation definition, unless you've held it continuously since before 1 July 2014. Any-occupation cover is cheaper but has a higher bar to claim: you must be unable to work again in any job suited to your education, training or experience. A TPD payout from super can also be taxed if you're under 60.

How it works

Total & Permanent Disability (TPD) insurance pays a lump sum if you become permanently unable to work due to illness or injury. Unlike income protection (which pays monthly until you recover), TPD is for worst-case scenarios: a spinal injury, severe stroke, or degenerative condition that ends your career permanently. The lump sum covers debt repayment, medical expenses, home modifications, and ongoing living costs. Many super funds include default TPD cover, set at a level the fund chooses and using the stricter 'any occupation' definition. This calculator adds up the need from your own figures; it doesn't price cover, because premiums depend on the insurer's assessment of you.

  1. 1Enter your annual income, years to retirement and the share of income to replace.
  2. 2Add your total debts that would need to be cleared.
  3. 3Enter any existing TPD cover (check your super statement).
  4. 4Add estimated ongoing medical/care costs.
  5. 5Choose between 'own occupation' and 'any occupation' definitions.
  6. 6See your estimated need and the gap to the cover you hold.

Worked examples

Surgeon with Own Occupation TPD

Dr. Chen, 42, earns $350,000. A hand tremor develops making surgery impossible.

Under 'own occupation': Dr. Chen can claim, because she can't perform surgery. Under 'any occupation': the claim may fail, because she could still work as a consultant, lecturer or GP. The definition matters most where a specialised job is the one at risk.

Tradesperson with Family

Dave, 38, earns $90,000. Mortgage: $400,000. Two kids. Has $150,000 TPD in super.

Estimated need: debts ($400,000) + income replacement (50% × $90,000 × 22 years = $990,000) + medical and care ($20,000 × 22 = $440,000) = $1,830,000. Existing: $150,000. Gap: $1,680,000. The figures are in today's dollars and ignore what a lump sum would earn once invested.

Questions people ask

What's the difference between TPD and income protection?
TPD: lump sum for PERMANENT disability (can never work again). Income protection: monthly payments for TEMPORARY disability (recovering from illness/injury). You typically need both: IP covers short/medium-term inability to work, TPD covers the catastrophic permanent scenario.
Can I claim TPD through super?
Many super funds include default TPD cover, and you claim it through the fund. New cover in super can't use an own-occupation definition, and the default amount is set by the fund. You can usually increase it through the fund, with premiums coming out of your super balance, or hold a separate policy outside super, where own-occupation cover is available.

The terms, in plain English

TPD (Total & Permanent Disability)
Insurance that pays a lump sum if you become permanently unable to work due to illness or injury.
Own Occupation
TPD definition where you're covered if you can never return to your specific occupation. Easier to claim on, more expensive, and usually only outside super.
Any Occupation
TPD definition where you're only covered if you can never do any job suited to your education, training or experience. Cheaper, with a higher bar to claim.

Official sources

Life Insurance Calculator

Calculate death cover alongside TPD.

Income Protection Calculator

Monthly payments for temporary disability.